Retail Trade

Retail trade is the final stage in the distribution of goods. It means sale of good in small lots for final consumption rather than for resale or further processing. A retailer buys goods from wholesalers and sells them in small quantities to the ultimate consumers. He serves as a link between the wholesalers and ultimate consumers. A retailer generally deals in a wide variety of goods. Retailing is the last link in the chain of intermediaries. A wholesaler sells goods mainly to dealers and industrial users. On the other hand, a retailer sells goods to the ultimate consumers. Goods sold by a wholesaler are resold or further processed and remain in the channel of distribution. Whereas those sold by retailer are meant for final consumption and move out of the channel of distribution. According to James Stephenson, a retailer is that trader who resells the goods to the ultimate or final consumers. Different groups are collected at the shop of retailer, so that many consumers can buy or collect those goods according to their necessities and conveniences.